Newport Beach, CA, March 30, 2011 – Victory Energy Corporation (Pinksheets:VYEY - News), an oil and gas exploration and development company, today announced that as reported in the filings, between October 15, 2010 and March 28, 2011, the Company sold to a group of 20 accredited investors $1.0 million of 10% Senior Secured Convertible Debentures which are convertible into an aggregate of 201 million shares of the Company's common stock at a conversion price of $0.005 per share of common stock. On December 31, 2010, the Company extended $0.5 million of unsecured loans that had been made by a related party into a Senior Secured Convertible Debenture that is convertible into an aggregate of 110.5 million shares of the Company's common stock at a conversion price of $0.005 per share of common stock. The maturity date of the Debentures is September 30, 2013, but may be extended at the discretion of the Company to December 31, 2013. The proceeds of these securities sales are being used for working capital purposes.
About Victory Energy Corporation:
Victory Energy Corporation is engaged in the exploration, acquisition, development, and exploitation of oil and gas properties. The Company's current producing assets are located in the state of Texas.
Victory Energy seeks to identify proven development prospects, conduct thorough geological and engineering evaluations and then target suitable farm-in partners for long term development of additional prospects.
For more information, please visit our website www.vyey.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
There are forward-looking statements contained in this news release. They use such words as "intend," "will," "may," "expect," "believe," "plan," or other similar terminology. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: risks associated with the implementation of the Company's strategic growth plan; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; conditions beyond the Company's control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company's customer base or acts of war or terrorism; availability and cost of materials and labor; demand for natural gas; cost and availability of capital; competition; the Company's overall marketing, operational and financial performance; economic and political conditions; the continued service of the Company's executive officer; adverse developments in and increased or unforeseen legal costs related to the Company's litigation; the success of the Company's strategic partnerships and joint venture relationships; the Company's ability to pay certain debts; adoption of new, or changes in, accounting policies and practices; adverse court rulings; results of other litigation in which the Company is involved; and other factors discussed from time to time in the Company's news releases, public statements and/or filings with the Securities and Exchange Commission. Forward-looking information is provided by Victory Energy Corporation pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.
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